Alembic Pharmaceuticals , a leading Indian pharmaceutical company, recently shared its financial guidance during a conference call, providing insights into its future strategies and financial expectations. The company outlined its plans for maintaining strong margins in its U.S. business while adjusting its research and development (R&D) spending.

U.S. Business and Margin Expectations

Alembic Pharmaceuticals expects its U.S. business gross margins to remain robust, projecting a range of 70-75%. This indicates the company's confidence in maintaining a strong position in the competitive U.S. pharmaceutical market.

R&D Spending Strategy

The company has announced a shift in its R&D spending strategy:

• Long-term R&D spending is projected to stabilize at around 8% of revenue.
• This marks a decrease from previous levels of 12-14%.
• Annual R&D spending guidance is maintained at INR 600-650 crores for FY26.

This adjustment suggests a more focused approach to research and development, potentially targeting specific high-value projects.

API Business Growth

Alembic Pharmaceuticals expects its Active Pharmaceutical Ingredients (API) business to grow by approximately 10% for the year. This growth in the API segment could contribute to the company's overall revenue.

EBITDA Margin Improvement

The company has set a target for improving its profitability:

• Aim to enhance EBITDA margins to 18-20% levels.
• This improvement is expected over the next couple of years.

Recent Financial Performance

According to the latest financial results published by Alembic Pharmaceuticals:

The company has shown growth in both revenue and profitability compared to the same quarter in the previous year, indicating a positive trajectory in its financial performance.

Alembic Pharmaceuticals' strategic focus on maintaining strong margins in its U.S. business, optimizing R&D spending, and improving overall profitability reflects its commitment to sustainable growth and operational efficiency in the competitive pharmaceutical industry.

Alembic Pharmaceuticals Limited (Alembic Pharma) has announced strong financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key financial metrics.

Financial Highlights

Alembic Pharma delivered a robust quarterly performance, with consolidated net profit rising to ₹1.85 billion from ₹1.50 billion in the same quarter last year, marking a substantial 23.33% year-over-year increase.

The company's revenue showed strong growth, reaching ₹19.10 billion compared to ₹16.48 billion in the corresponding period of the previous year, representing a 15.90% increase. This revenue growth indicates solid demand for the company's pharmaceutical products.

Operational Performance

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant improvement, growing to ₹3.15 billion from ₹2.40 billion year-over-year, reflecting a 31.25% increase. This growth in EBITDA outpaced revenue growth, suggesting improved operational efficiency.

The EBITDA margin expanded by 194 basis points, reaching 16.50% compared to 14.56% in the same quarter last year. This margin expansion indicates the company's ability to manage costs effectively while growing its top line.

Board Meeting Outcome

As per the LODR data, the Board of Directors of Alembic Pharmaceuticals Limited approved the Unaudited Financial Results for the quarter and half year ended 30th September, 2025, at its meeting held on 4th November, 2025. The meeting commenced at 12 Noon and concluded at 2:25 p.m.

The company has submitted consolidated and standalone unaudited financial results, including statements of assets and liabilities and cash flow statements, for the quarter and half year ended 30th September, 2025, to the stock exchanges.

Alembic Pharma's strong performance in Q2 FY26 reflects its resilience in the competitive pharmaceutical market. The company's ability to increase profitability while expanding its revenue base positions it well for the coming quarters.